Attached files
| file | filename |
|---|---|
| 8-K - 8-K - STARWOOD PROPERTY TRUST, INC. | f8-k.htm |
Exhibit 99.1
For Immediate Release
Starwood Property Trust Reports Results for the
Quarter Ended June 30, 2018
– Quarterly GAAP Earnings of $0.40 and Core Earnings of $0.54 per Diluted Common Share –
– Deploys a Record $2.8 Billion of Capital, including $2.2 Billion in Lending Segment –
– Year-to-Date Capital Deployed of $4.7 Billion, Up 63% Versus 2017 –
– Declares Dividend of $0.48 per share for the Third Quarter of 2018 –
– Subsequent to Quarter End, Commits to Acquire $2.6 Billion Platform and Loan Portfolio from GE Capital –
GREENWICH, Conn., August 8, 2018 /PRNewswire/ -- Starwood Property Trust, Inc. (NYSE: STWD) today announced operating results for the fiscal quarter ended June 30, 2018. The Company’s second quarter 2018 GAAP net income was $109.2 million, or $0.40 per diluted share, and Core Earnings (a non-GAAP financial measure) was $148.4 million, or $0.54 per diluted share.
“I am very pleased with the performance of our Company this quarter, with every business line continuing to perform at or above our expectations. The majority of our earnings are still derived from our primary line of business, real estate lending, where the $2.0 billion of loan originations this quarter were the largest in our Company’s history. Our property investments, residential lending platform, CMBS and conduit operations continue to enhance our enterprise, along with our special servicer, where we added 13 new special servicing assignments, the highest since we acquired LNR in 2013. With the acquisition of GE Capital’s Energy Project Finance platform, we have further diversified our lending opportunity set outside of traditional real estate and have never been more excited about our Company’s future,” commented Barry Sternlicht, Chairman and CEO of Starwood Property Trust.
Dividend
On August 8, 2018, the Company’s Board of Directors declared a dividend of $0.48 per share of common stock for the quarter ending September 30, 2018. The dividend is payable on October 15, 2018 to common stockholders of record as of September 28, 2018.
Supplemental Schedules
The Company has published supplemental earnings schedules on its website in order to provide additional disclosure and financial information for the benefit of the Company’s stakeholders. Specifically, these materials can be found on the Company’s website in the Investor Relations section under “Quarterly Results” at www.starwoodpropertytrust.com.
Conference Call and Webcast Information
The Company will host a webcast and conference call on Wednesday, August 8, 2018, at 10:00 a.m. Eastern Time to discuss the quarter’s financial results and recent events. A webcast will be available on the Company’s website at www.starwoodpropertytrust.com. To listen to a live broadcast, access the site at least 15 minutes prior to the scheduled start time in order to register and download and install any necessary audio software.
To Participate in the Telephone Conference Call:
Dial in at least five minutes prior to start time.
Domestic: 1-877-407-9039
International: 1-201-689-8470
Conference Call Playback:
Domestic: 1-844-512-2921
International: 1-412-317-6671
Passcode: 13681522
The playback can be accessed through August 22, 2018.
About Starwood Property Trust, Inc.
Starwood Property Trust (NYSE: STWD), an affiliate of global private investment firm Starwood Capital Group, is the largest commercial mortgage real estate investment trust in the United States. The Company’s core business focuses on originating, acquiring, financing and managing commercial mortgage loans and other commercial real estate debt and equity investments. With total capital deployed since inception of over $44 billion, Starwood Property Trust continues to solidify its position as one of the premier real estate finance companies in the country.
Forward-Looking Statements
Statements in this press release which are not historical fact may be deemed forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Although Starwood Property Trust, Inc. believes the expectations reflected in any forward-looking statements are based on reasonable assumptions, it can give no assurance that its expectations will be attained. Factors that could cause actual results to differ materially from the Company’s expectations include completion of pending investments, continued ability to acquire additional investments, competition within the finance and real estate industries, economic conditions, availability of financing and other risks detailed from time to time in the Company's reports filed with the SEC.
2
Starwood Property Trust, Inc. and Subsidiaries
Condensed Consolidated Statement of Operations by Segment
For the three months ended June 30, 2018
(Amounts in thousands)
|
|
|
|
|
|
|
Investing |
|
|
|
|
|
Investing |
|
|
|||||||
|
|
|
Lending |
|
Property |
|
and Servicing |
|
|
|
|
|
and Servicing |
|
|
|||||||
|
|
|
Segment |
|
Segment |
|
Segment |
|
Corporate |
|
Subtotal |
|
VIEs |
|
Total |
|||||||
|
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income from loans |
|
$ |
148,268 |
|
$ |
— |
|
$ |
3,436 |
|
$ |
— |
|
$ |
151,704 |
|
$ |
— |
|
$ |
151,704 |
|
Interest income from investment securities |
|
|
8,930 |
|
|
— |
|
|
30,472 |
|
|
— |
|
|
39,402 |
|
|
(28,612) |
|
|
10,790 |
|
Servicing fees |
|
|
50 |
|
|
— |
|
|
24,687 |
|
|
— |
|
|
24,737 |
|
|
(7,422) |
|
|
17,315 |
|
Rental income |
|
|
— |
|
|
74,401 |
|
|
14,490 |
|
|
— |
|
|
88,891 |
|
|
— |
|
|
88,891 |
|
Other revenues |
|
|
224 |
|
|
81 |
|
|
516 |
|
|
86 |
|
|
907 |
|
|
(51) |
|
|
856 |
|
Total revenues |
|
|
157,472 |
|
|
74,482 |
|
|
73,601 |
|
|
86 |
|
|
305,641 |
|
|
(36,085) |
|
|
269,556 |
|
Costs and expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Management fees |
|
|
463 |
|
|
— |
|
|
18 |
|
|
26,907 |
|
|
27,388 |
|
|
106 |
|
|
27,494 |
|
Interest expense |
|
|
34,826 |
|
|
19,380 |
|
|
5,807 |
|
|
31,854 |
|
|
91,867 |
|
|
(275) |
|
|
91,592 |
|
General and administrative |
|
|
6,251 |
|
|
1,971 |
|
|
23,855 |
|
|
3,367 |
|
|
35,444 |
|
|
84 |
|
|
35,528 |
|
Acquisition and investment pursuit costs |
|
|
1,692 |
|
|
(52) |
|
|
(79) |
|
|
— |
|
|
1,561 |
|
|
— |
|
|
1,561 |
|
Costs of rental operations |
|
|
— |
|
|
25,991 |
|
|
6,906 |
|
|
— |
|
|
32,897 |
|
|
— |
|
|
32,897 |
|
Depreciation and amortization |
|
|
16 |
|
|
31,738 |
|
|
5,396 |
|
|
— |
|
|
37,150 |
|
|
— |
|
|
37,150 |
|
Loan loss allowance, net |
|
|
25,259 |
|
|
— |
|
|
— |
|
|
— |
|
|
25,259 |
|
|
— |
|
|
25,259 |
|
Other expense |
|
|
77 |
|
|
— |
|
|
420 |
|
|
— |
|
|
497 |
|
|
— |
|
|
497 |
|
Total costs and expenses |
|
|
68,584 |
|
|
79,028 |
|
|
42,323 |
|
|
62,128 |
|
|
252,063 |
|
|
(85) |
|
|
251,978 |
|
Income (loss) before other income (loss), income taxes and non-controlling interests |
|
|
88,888 |
|
|
(4,546) |
|
|
31,278 |
|
|
(62,042) |
|
|
53,578 |
|
|
(36,000) |
|
|
17,578 |
|
Other income (loss): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change in net assets related to consolidated VIEs |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
43,946 |
|
|
43,946 |
|
Change in fair value of servicing rights |
|
|
— |
|
|
— |
|
|
(3,255) |
|
|
— |
|
|
(3,255) |
|
|
1,052 |
|
|
(2,203) |
|
Change in fair value of investment securities, net |
|
|
482 |
|
|
— |
|
|
15,110 |
|
|
— |
|
|
15,592 |
|
|
(7,890) |
|
|
7,702 |
|
Change in fair value of mortgage loans held-for-sale, net |
|
|
184 |
|
|
— |
|
|
14,649 |
|
|
— |
|
|
14,833 |
|
|
— |
|
|
14,833 |
|
Earnings (loss) from unconsolidated entities |
|
|
1,803 |
|
|
2,933 |
|
|
1,454 |
|
|
— |
|
|
6,190 |
|
|
(720) |
|
|
5,470 |
|
Gain on sale of investments and other assets, net |
|
|
135 |
|
|
2,941 |
|
|
10,361 |
|
|
— |
|
|
13,437 |
|
|
— |
|
|
13,437 |
|
Gain (loss) on derivative financial instruments, net |
|
|
19,467 |
|
|
19,920 |
|
|
(398) |
|
|
(6,367) |
|
|
32,622 |
|
|
— |
|
|
32,622 |
|
Foreign currency (loss) gain, net |
|
|
(13,264) |
|
|
(1) |
|
|
1 |
|
|
— |
|
|
(13,264) |
|
|
— |
|
|
(13,264) |
|
Loss on extinguishment of debt |
|
|
— |
|
|
— |
|
|
(186) |
|
|
— |
|
|
(186) |
|
|
— |
|
|
(186) |
|
Other income, net |
|
|
— |
|
|
489 |
|
|
9 |
|
|
— |
|
|
498 |
|
|
— |
|
|
498 |
|
Total other income (loss) |
|
|
8,807 |
|
|
26,282 |
|
|
37,745 |
|
|
(6,367) |
|
|
66,467 |
|
|
36,388 |
|
|
102,855 |
|
Income (loss) before income taxes |
|
|
97,695 |
|
|
21,736 |
|
|
69,023 |
|
|
(68,409) |
|
|
120,045 |
|
|
388 |
|
|
120,433 |
|
Income tax provision |
|
|
(1,720) |
|
|
(611) |
|
|
(1,012) |
|
|
— |
|
|
(3,343) |
|
|
— |
|
|
(3,343) |
|
Net income (loss) |
|
|
95,975 |
|
|
21,125 |
|
|
68,011 |
|
|
(68,409) |
|
|
116,702 |
|
|
388 |
|
|
117,090 |
|
Net income attributable to non-controlling interests |
|
|
(361) |
|
|
(4,684) |
|
|
(2,427) |
|
|
— |
|
|
(7,472) |
|
|
(388) |
|
|
(7,860) |
|
Net income (loss) attributable to Starwood Property Trust, Inc. |
|
$ |
95,614 |
|
$ |
16,441 |
|
$ |
65,584 |
|
$ |
(68,409) |
|
$ |
109,230 |
|
$ |
— |
|
$ |
109,230 |
3
Definition of Core Earnings
Core Earnings, a non-GAAP financial measure, is used to compute the Company’s incentive fees to its external manager and is an appropriate supplemental disclosure for a mortgage REIT. For the Company’s purposes, Core Earnings is defined as GAAP net income (loss) excluding non-cash equity compensation expense, the incentive fee due to the Company’s external manager, acquisition costs from successful acquisitions, depreciation and amortization of real estate and associated intangibles and any unrealized gains, losses or other non-cash items recorded in net income for the period, regardless of whether such items are included in other comprehensive income or loss, or in net income and, to the extent deducted from net income (loss), distributions payable with respect to equity securities of subsidiaries issued in exchange for properties or interests therein. The amount is adjusted to exclude one-time events pursuant to changes in GAAP and certain other non-cash adjustments as determined by the Company’s external manager and approved by a majority of the Company’s independent directors.
Reconciliation of Net Income to Core Earnings
For the three months ended June 30, 2018
(Amounts in thousands except per share data)
|
|
|
|
|
|
|
Investing |
|
|
|
|
|
||||
|
|
|
Lending |
|
Property |
|
and Servicing |
|
|
|
|
|
||||
|
|
|
Segment |
|
Segment |
|
Segment |
|
Corporate |
|
Total |
|||||
|
Net income (loss) attributable to Starwood Property Trust, Inc. |
|
$ |
95,614 |
|
$ |
16,441 |
|
$ |
65,584 |
|
$ |
(68,409) |
|
$ |
109,230 |
|
Add / (Deduct): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-controlling interests attributable to Woodstar II Class A Units |
|
|
— |
|
|
4,684 |
|
|
— |
|
|
— |
|
|
4,684 |
|
Non-cash equity compensation expense |
|
|
766 |
|
|
87 |
|
|
1,317 |
|
|
3,667 |
|
|
5,837 |
|
Management incentive fee |
|
|
— |
|
|
— |
|
|
— |
|
|
5,687 |
|
|
5,687 |
|
Acquisition and investment pursuit costs |
|
|
1,266 |
|
|
(67) |
|
|
(57) |
|
|
— |
|
|
1,142 |
|
Depreciation and amortization |
|
|
16 |
|
|
32,063 |
|
|
4,885 |
|
|
— |
|
|
36,964 |
|
Loan loss allowance, net |
|
|
25,259 |
|
|
— |
|
|
— |
|
|
— |
|
|
25,259 |
|
Interest income adjustment for securities |
|
|
(197) |
|
|
— |
|
|
2,695 |
|
|
— |
|
|
2,498 |
|
Extinguishment of debt, net |
|
|
— |
|
|
— |
|
|
— |
|
|
(247) |
|
|
(247) |
|
Other non-cash items |
|
|
— |
|
|
(1,212) |
|
|
448 |
|
|
895 |
|
|
131 |
|
Reversal of unrealized (gains) / losses on: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans held-for-sale |
|
|
(184) |
|
|
— |
|
|
(14,649) |
|
|
— |
|
|
(14,833) |
|
Securities |
|
|
(625) |
|
|
— |
|
|
(15,110) |
|
|
— |
|
|
(15,735) |
|
Derivatives |
|
|
(19,697) |
|
|
(19,013) |
|
|
58 |
|
|
7,151 |
|
|
(31,501) |
|
Foreign currency |
|
|
13,264 |
|
|
1 |
|
|
(1) |
|
|
— |
|
|
13,264 |
|
Earnings from unconsolidated entities |
|
|
(1,803) |
|
|
(2,933) |
|
|
(1,454) |
|
|
— |
|
|
(6,190) |
|
Recognition of realized gains / (losses) on: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans held-for-sale |
|
|
(1,196) |
|
|
— |
|
|
14,227 |
|
|
— |
|
|
13,031 |
|
Securities |
|
|
142 |
|
|
— |
|
|
(1,978) |
|
|
— |
|
|
(1,836) |
|
Derivatives |
|
|
(129) |
|
|
(229) |
|
|
618 |
|
|
— |
|
|
260 |
|
Foreign currency |
|
|
(140) |
|
|
(2) |
|
|
(1) |
|
|
— |
|
|
(143) |
|
Earnings from unconsolidated entities |
|
|
1,558 |
|
|
— |
|
|
1,218 |
|
|
— |
|
|
2,776 |
|
Sales of properties |
|
|
— |
|
|
(155) |
|
|
(1,681) |
|
|
— |
|
|
(1,836) |
|
Core Earnings (Loss) |
|
$ |
113,914 |
|
$ |
29,665 |
|
$ |
56,119 |
|
$ |
(51,256) |
|
$ |
148,442 |
|
Core Earnings (Loss) per Weighted Average Diluted Share |
|
$ |
0.42 |
|
$ |
0.11 |
|
$ |
0.20 |
|
$ |
(0.19) |
|
$ |
0.54 |
4
Starwood Property Trust, Inc. and Subsidiaries
Condensed Consolidated Statement of Operations by Segment
For the six months ended June 30, 2018
(Amounts in thousands)
|
|
|
|
|
|
|
Investing |
|
|
|
|
|
Investing |
|
|
|||||||
|
|
|
Lending |
|
Property |
|
and Servicing |
|
|
|
|
|
and Servicing |
|
|
|||||||
|
|
|
Segment |
|
Segment |
|
Segment |
|
Corporate |
|
Subtotal |
|
VIEs |
|
Total |
|||||||
|
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income from loans |
|
$ |
283,240 |
|
$ |
— |
|
$ |
6,084 |
|
$ |
— |
|
$ |
289,324 |
|
$ |
— |
|
$ |
289,324 |
|
Interest income from investment securities |
|
|
23,369 |
|
|
— |
|
|
64,871 |
|
|
— |
|
|
88,240 |
|
|
(62,181) |
|
|
26,059 |
|
Servicing fees |
|
|
215 |
|
|
— |
|
|
58,121 |
|
|
— |
|
|
58,336 |
|
|
(14,954) |
|
|
43,382 |
|
Rental income |
|
|
— |
|
|
141,111 |
|
|
28,890 |
|
|
— |
|
|
170,001 |
|
|
— |
|
|
170,001 |
|
Other revenues |
|
|
418 |
|
|
182 |
|
|
744 |
|
|
138 |
|
|
1,482 |
|
|
(105) |
|
|
1,377 |
|
Total revenues |
|
|
307,242 |
|
|
141,293 |
|
|
158,710 |
|
|
138 |
|
|
607,383 |
|
|
(77,240) |
|
|
530,143 |
|
Costs and expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Management fees |
|
|
943 |
|
|
— |
|
|
36 |
|
|
56,958 |
|
|
57,937 |
|
|
199 |
|
|
58,136 |
|
Interest expense |
|
|
66,847 |
|
|
35,914 |
|
|
10,902 |
|
|
65,657 |
|
|
179,320 |
|
|
(545) |
|
|
178,775 |
|
General and administrative |
|
|
12,946 |
|
|
3,830 |
|
|
44,875 |
|
|
5,849 |
|
|
67,500 |
|
|
170 |
|
|
67,670 |
|
Acquisition and investment pursuit costs |
|
|
1,912 |
|
|
(46) |
|
|
72 |
|
|
— |
|
|
1,938 |
|
|
— |
|
|
1,938 |
|
Costs of rental operations |
|
|
— |
|
|
49,479 |
|
|
13,111 |
|
|
— |
|
|
62,590 |
|
|
— |
|
|
62,590 |
|
Depreciation and amortization |
|
|
33 |
|
|
58,207 |
|
|
10,654 |
|
|
— |
|
|
68,894 |
|
|
— |
|
|
68,894 |
|
Loan loss allowance, net |
|
|
26,797 |
|
|
— |
|
|
— |
|
|
— |
|
|
26,797 |
|
|
— |
|
|
26,797 |
|
Other expense |
|
|
154 |
|
|
— |
|
|
447 |
|
|
— |
|
|
601 |
|
|
— |
|
|
601 |
|
Total costs and expenses |
|
|
109,632 |
|
|
147,384 |
|
|
80,097 |
|
|
128,464 |
|
|
465,577 |
|
|
(176) |
|
|
465,401 |
|
Income (loss) before other income (loss), income taxes and non-controlling interests |
|
|
197,610 |
|
|
(6,091) |
|
|
78,613 |
|
|
(128,326) |
|
|
141,806 |
|
|
(77,064) |
|
|
64,742 |
|
Other income (loss): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change in net assets related to consolidated VIEs |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
96,599 |
|
|
96,599 |
|
Change in fair value of servicing rights |
|
|
— |
|
|
— |
|
|
(12,423) |
|
|
— |
|
|
(12,423) |
|
|
4,406 |
|
|
(8,017) |
|
Change in fair value of investment securities, net |
|
|
(222) |
|
|
— |
|
|
29,089 |
|
|
— |
|
|
28,867 |
|
|
(21,314) |
|
|
7,553 |
|
Change in fair value of mortgage loans held-for-sale, net |
|
|
(1,508) |
|
|
— |
|
|
24,141 |
|
|
— |
|
|
22,633 |
|
|
— |
|
|
22,633 |
|
Earnings (loss) from unconsolidated entities |
|
|
3,247 |
|
|
(582) |
|
|
3,050 |
|
|
— |
|
|
5,715 |
|
|
(1,707) |
|
|
4,008 |
|
Gain on sale of investments and other assets, net |
|
|
414 |
|
|
6,883 |
|
|
16,800 |
|
|
— |
|
|
24,097 |
|
|
— |
|
|
24,097 |
|
Gain (loss) on derivative financial instruments, net |
|
|
8,649 |
|
|
21,839 |
|
|
4,644 |
|
|
(19,369) |
|
|
15,763 |
|
|
— |
|
|
15,763 |
|
Foreign currency gain (loss), net |
|
|
286 |
|
|
1 |
|
|
(2) |
|
|
— |
|
|
285 |
|
|
— |
|
|
285 |
|
Loss on extinguishment of debt |
|
|
— |
|
|
— |
|
|
(186) |
|
|
— |
|
|
(186) |
|
|
— |
|
|
(186) |
|
Other income, net |
|
|
43 |
|
|
506 |
|
|
57 |
|
|
— |
|
|
606 |
|
|
— |
|
|
606 |
|
Total other income (loss) |
|
|
10,909 |
|
|
28,647 |
|
|
65,170 |
|
|
(19,369) |
|
|
85,357 |
|
|
77,984 |
|
|
163,341 |
|
Income (loss) before income taxes |
|
|
208,519 |
|
|
22,556 |
|
|
143,783 |
|
|
(147,695) |
|
|
227,163 |
|
|
920 |
|
|
228,083 |
|
Income tax provision |
|
|
(2,667) |
|
|
(1,872) |
|
|
(1,660) |
|
|
— |
|
|
(6,199) |
|
|
— |
|
|
(6,199) |
|
Net income (loss) |
|
|
205,852 |
|
|
20,684 |
|
|
142,123 |
|
|
(147,695) |
|
|
220,964 |
|
|
920 |
|
|
221,884 |
|
Net income attributable to non-controlling interests |
|
|
(722) |
|
|
(7,137) |
|
|
(3,943) |
|
|
— |
|
|
(11,802) |
|
|
(920) |
|
|
(12,722) |
|
Net income (loss) attributable to Starwood Property Trust, Inc. |
|
$ |
205,130 |
|
$ |
13,547 |
|
$ |
138,180 |
|
$ |
(147,695) |
|
$ |
209,162 |
|
$ |
— |
|
$ |
209,162 |
5
Reconciliation of Net Income to Core Earnings
For the six months ended June 30, 2018
(Amounts in thousands except per share data)
|
|
|
|
|
|
|
Investing |
|
|
|
|
|||||
|
|
|
Lending |
|
Property |
|
and Servicing |
|
|
|
|
|||||
|
|
|
Segment |
|
Segment |
|
Segment |
|
Corporate |
|
Total |
|||||
|
Net income (loss) attributable to Starwood Property Trust, Inc. |
|
$ |
205,130 |
|
$ |
13,547 |
|
$ |
138,180 |
|
$ |
(147,695) |
|
$ |
209,162 |
|
Add / (Deduct): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-controlling interests attributable to Woodstar II Class A Units |
|
|
— |
|
|
7,137 |
|
|
— |
|
|
— |
|
|
7,137 |
|
Non-cash equity compensation expense |
|
|
1,329 |
|
|
130 |
|
|
2,292 |
|
|
6,866 |
|
|
10,617 |
|
Management incentive fee |
|
|
— |
|
|
— |
|
|
— |
|
|
15,321 |
|
|
15,321 |
|
Acquisition and investment pursuit costs |
|
|
1,385 |
|
|
(160) |
|
|
(86) |
|
|
— |
|
|
1,139 |
|
Depreciation and amortization |
|
|
33 |
|
|
58,868 |
|
|
9,797 |
|
|
— |
|
|
68,698 |
|
Loan loss allowance, net |
|
|
26,797 |
|
|
— |
|
|
— |
|
|
— |
|
|
26,797 |
|
Interest income adjustment for securities |
|
|
(394) |
|
|
— |
|
|
1,633 |
|
|
— |
|
|
1,239 |
|
Extinguishment of debt, net |
|
|
— |
|
|
— |
|
|
— |
|
|
9,508 |
|
|
9,508 |
|
Other non-cash items |
|
|
— |
|
|
(1,774) |
|
|
572 |
|
|
1,776 |
|
|
574 |
|
Reversal of unrealized (gains) / losses on: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans held-for-sale |
|
|
1,508 |
|
|
— |
|
|
(24,141) |
|
|
— |
|
|
(22,633) |
|
Securities |
|
|
79 |
|
|
— |
|
|
(29,089) |
|
|
— |
|
|
(29,010) |
|
Derivatives |
|
|
(9,168) |
|
|
(20,449) |
|
|
(5,364) |
|
|
21,549 |
|
|
(13,432) |
|
Foreign currency |
|
|
(286) |
|
|
(1) |
|
|
2 |
|
|
— |
|
|
(285) |
|
Earnings from unconsolidated entities |
|
|
(3,247) |
|
|
582 |
|
|
(3,050) |
|
|
— |
|
|
(5,715) |
|
Recognition of realized gains / (losses) on: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans held-for-sale |
|
|
(2,071) |
|
|
— |
|
|
23,870 |
|
|
— |
|
|
21,799 |
|
Securities |
|
|
142 |
|
|
— |
|
|
(6,092) |
|
|
— |
|
|
(5,950) |
|
Derivatives |
|
|
(5,854) |
|
|
(708) |
|
|
6,149 |
|
|
— |
|
|
(413) |
|
Foreign currency |
|
|
7,911 |
|
|
— |
|
|
(42) |
|
|
— |
|
|
7,869 |
|
Earnings from unconsolidated entities |
|
|
3,405 |
|
|
— |
|
|
2,262 |
|
|
— |
|
|
5,667 |
|
Sales of properties |
|
|
— |
|
|
(365) |
|
|
(3,446) |
|
|
— |
|
|
(3,811) |
|
Core Earnings (Loss) |
|
$ |
226,699 |
|
$ |
56,807 |
|
$ |
113,447 |
|
$ |
(92,675) |
|
$ |
304,278 |
|
Core Earnings (Loss) per Weighted Average Diluted Share |
|
$ |
0.84 |
|
$ |
0.21 |
|
$ |
0.41 |
|
$ |
(0.34) |
|
$ |
1.12 |
6
Starwood Property Trust, Inc. and Subsidiaries
Condensed Consolidated Balance Sheet by Segment
As of June 30, 2018
(Amounts in thousands)
|
|
|
|
|
|
|
Investing |
|
|
|
|
|
Investing |
|
|
|||||||
|
|
|
Lending |
|
Property |
|
and Servicing |
|
|
|
|
|
and Servicing |
|
|
|||||||
|
|
|
Segment |
|
Segment |
|
Segment |
|
Corporate |
|
Subtotal |
|
VIEs |
|
Total |
|||||||
|
Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
10,303 |
|
$ |
25,141 |
|
$ |
68,853 |
|
$ |
130,211 |
|
$ |
234,508 |
|
$ |
911 |
|
$ |
235,419 |
|
Restricted cash |
|
|
51,942 |
|
|
15,493 |
|
|
9,639 |
|
|
12,720 |
|
|
89,794 |
|
|
— |
|
|
89,794 |
|
Loans held-for-investment, net |
|
|
6,924,600 |
|
|
— |
|
|
3,576 |
|
|
— |
|
|
6,928,176 |
|
|
— |
|
|
6,928,176 |
|
Loans held-for-sale |
|
|
792,664 |
|
|
— |
|
|
300,105 |
|
|
— |
|
|
1,092,769 |
|
|
— |
|
|
1,092,769 |
|
Loans transferred as secured borrowings |
|
|
74,217 |
|
|
— |
|
|
— |
|
|
— |
|
|
74,217 |
|
|
— |
|
|
74,217 |
|
Investment securities |
|
|
389,509 |
|
|
— |
|
|
1,076,411 |
|
|
— |
|
|
1,465,920 |
|
|
(1,023,985) |
|
|
441,935 |
|
Properties, net |
|
|
— |
|
|
2,642,076 |
|
|
294,608 |
|
|
— |
|
|
2,936,684 |
|
|
— |
|
|
2,936,684 |
|
Intangible assets |
|
|
— |
|
|
104,425 |
|
|
86,101 |
|
|
— |
|
|
190,526 |
|
|
(23,840) |
|
|
166,686 |
|
Investment in unconsolidated entities |
|
|
33,876 |
|
|
110,122 |
|
|
44,435 |
|
|
— |
|
|
188,433 |
|
|
(21,717) |
|
|
166,716 |
|
Goodwill |
|
|
— |
|
|
— |
|
|
140,437 |
|
|
— |
|
|
140,437 |
|
|
— |
|
|
140,437 |
|
Derivative assets |
|
|
10,748 |
|
|
39,184 |
|
|
883 |
|
|
— |
|
|
50,815 |
|
|
— |
|
|
50,815 |
|
Accrued interest receivable |
|
|
40,180 |
|
|
244 |
|
|
1,042 |
|
|
13,194 |
|
|
54,660 |
|
|
— |
|
|
54,660 |
|
Other assets |
|
|
31,146 |
|
|
92,785 |
|
|
51,794 |
|
|
1,878 |
|
|
177,603 |
|
|
(25) |
|
|
177,578 |
|
VIE assets, at fair value |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
48,044,873 |
|
|
48,044,873 |
|
Total Assets |
|
$ |
8,359,185 |
|
$ |
3,029,470 |
|
$ |
2,077,884 |
|
$ |
158,003 |
|
$ |
13,624,542 |
|
$ |
46,976,217 |
|
$ |
60,600,759 |
|
Liabilities and Equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts payable, accrued expenses and other liabilities |
|
$ |
21,461 |
|
$ |
70,113 |
|
$ |
69,129 |
|
$ |
28,875 |
|
$ |
189,578 |
|
$ |
95 |
|
$ |
189,673 |
|
Related-party payable |
|
|
65 |
|
|
— |
|
|
39 |
|
|
25,220 |
|
|
25,324 |
|
|
— |
|
|
25,324 |
|
Dividends payable |
|
|
— |
|
|
— |
|
|
— |
|
|
126,857 |
|
|
126,857 |
|
|
— |
|
|
126,857 |
|
Derivative liabilities |
|
|
6,321 |
|
|
4,736 |
|
|
862 |
|
|
24,216 |
|
|
36,135 |
|
|
— |
|
|
36,135 |
|
Secured financing agreements, net |
|
|
3,466,334 |
|
|
1,912,368 |
|
|
564,226 |
|
|
297,389 |
|
|
6,240,317 |
|
|
(23,700) |
|
|
6,216,617 |
|
Unsecured senior notes, net |
|
|
— |
|
|
— |
|
|
— |
|
|
2,255,976 |
|
|
2,255,976 |
|
|
— |
|
|
2,255,976 |
|
Secured borrowings on transferred loans, net |
|
|
74,058 |
|
|
— |
|
|
— |
|
|
— |
|
|
74,058 |
|
|
— |
|
|
74,058 |
|
VIE liabilities, at fair value |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
46,976,428 |
|
|
46,976,428 |
|
Total Liabilities |
|
|
3,568,239 |
|
|
1,987,217 |
|
|
634,256 |
|
|
2,758,533 |
|
|
8,948,245 |
|
|
46,952,823 |
|
|
55,901,068 |
|
Equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Starwood Property Trust, Inc. Stockholders’ Equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common stock |
|
|
— |
|
|
— |
|
|
— |
|
|
2,675 |
|
|
2,675 |
|
|
— |
|
|
2,675 |
|
Additional paid-in capital |
|
|
1,905,265 |
|
|
826,782 |
|
|
606,583 |
|
|
1,400,339 |
|
|
4,738,969 |
|
|
— |
|
|
4,738,969 |
|
Treasury stock |
|
|
— |
|
|
— |
|
|
— |
|
|
(104,194) |
|
|
(104,194) |
|
|
— |
|
|
(104,194) |
|
Accumulated other comprehensive income (loss) |
|
|
60,082 |
|
|
8,115 |
|
|
(63) |
|
|
— |
|
|
68,134 |
|
|
— |
|
|
68,134 |
|
Retained earnings (accumulated deficit) |
|
|
2,815,109 |
|
|
(788) |
|
|
824,267 |
|
|
(3,899,350) |
|
|
(260,762) |
|
|
— |
|
|
(260,762) |
|
Total Starwood Property Trust, Inc. Stockholders’ Equity |
|
|
4,780,456 |
|
|
834,109 |
|
|
1,430,787 |
|
|
(2,600,530) |
|
|
4,444,822 |
|
|
— |
|
|
4,444,822 |
|
Non-controlling interests in consolidated subsidiaries |
|
|
10,490 |
|
|
208,144 |
|
|
12,841 |
|
|
— |
|
|
231,475 |
|
|
23,394 |
|
|
254,869 |
|
Total Equity |
|
|
4,790,946 |
|
|
1,042,253 |
|
|
1,443,628 |
|
|
(2,600,530) |
|
|
4,676,297 |
|
|
23,394 |
|
|
4,699,691 |
|
Total Liabilities and Equity |
|
$ |
8,359,185 |
|
$ |
3,029,470 |
|
$ |
2,077,884 |
|
$ |
158,003 |
|
$ |
13,624,542 |
|
$ |
46,976,217 |
|
$ |
60,600,759 |
Additional information can be found on the Company’s website at www.starwoodpropertytrust.com.
Contact:
Zachary Tanenbaum
Starwood Property Trust
Phone: 203-422-7788
Email: ztanenbaum@starwood.com
7